US Stocks Week Ended January 23, 2015

 
Equity markets had their first weekly advance of 2015, as the S&P 500 rose over 1.6%. Oil continued to fall as the price of light sweet crude futures sank over 6.6% for the week. Globally, the IMF (International Monetary Fund) revised their 2015 global growth expectations, cutting global economic growth to 3.5% while raising U.S. economic growth to 3.6%. In an effort to lift the stagnant European economy and ease deflation fears, ECB (European Central Bank) President Mario Draghi announced a version of quantitative easing that is going to buy €60b a month through September 2016. The unprecedented €1.2t program was welcomed by equity markets as the Euro Stoxx 50 rallied over 5.6% in EUR and nearly 3% in USD. Domestically, Netflix Inc. surged nearly 30% this week as earnings and subscriber growth outpaced analyst estimates. Delta Air Lines Inc. climbed over 10% and Southwest Airlines Co.. rallied nearly 16% this week, as both companies announced 4Q profits above analyst estimates attributable to lower fuel costs.  Cleveland based bank KeyCorp announced earnings of $0.29 in the fourth quarter, outpacing analyst EPS estimates of $0.26. Ebay Inc. jumped over 7% Thursday, as the company announced a restructuring which included cutting 2,400 jobs. United Parcel Service Inc. fell nearly 10% Friday, the most since 2006, as the company announced earnings below estimates and projected growth below long term guidance. Starbucks Corp. rallied over 6.6% as earnings and revenues remained strong and they announced ex Juniper Networks Inc. CEO Kevin Johnson as the new COO. Looking ahead to next week, earnings season continues as Microsoft Corp., Texas Instruments Inc., Corning Inc., United Technologies Corp., Pfizer Inc., Caterpillar Inc., Illinois Tool Works Inc., Apple Inc., Yahoo! Inc., AT&T Inc., 3M Co., Boeing Co. and Facebook Inc. are all expected to report.
Posted on Monday, January 26, 2015 @ 8:37 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.